What would a debt default mean?

[CountValentine]

Please no POLITICS!!!

Is it just semantics or is there real consequences? Are my T-bills at risk?

[moko]

Please no POLITICS!!!

Is it just semantics or is there real consequences? Are my T-bills at risk?

https://www.investopedia.com/ask/answers/062315/what-are-differences-between-delinquency-and-default.asp

[ckmk47]

It's all posturing.
You must remember previous no-budget, government is on furlough times.
Big media fuss. National parks shut down.  then a dea is struck and everyone gets paid as if they worked even though they didn't.
This one is no different.
Same groups of politicians.  Different scare terms.

[CountValentine]

It's all posturing.
You must remember previous no-budget, government is on furlough times.
Big media fuss. National parks shut down.  then a dea is struck and everyone gets paid as if they worked even though they didn't.
This one is no different.

Doesn't this one effect our obligations to foreign governments that hold our paper?

[Ver hut gazugt]

Doesn't this one effect our obligations to foreign governments that hold our paper?

depends who you ask.

[CountValentine]

depends who you ask.

Will they be paid?

[foseph]

The US will never default or at least not in this general scenario

[Ver hut gazugt]

Will they be paid?

depends who you ask. It boils down to, will the treasury prioritize debt over other expenses.

[CountValentine]

I guess the next question is will this affect the markets and interest rates?

[foseph]

I guess the next question is will this affect the markets and interest rates?

Yes and yes but would likely be only for a short period. Look back to the last time when the rating agencies downgrade us debt

[Joe4007]

I guess the next question is will this affect the markets and interest rates?

If they default, it'll be a seismic shift of epic proportions for the entire world financial system. The chances of that happening are miniscule though as the incentives for pretty much everyone involved disproportionally favor not defaulting (at least in the absolute sense - the government might, and probably eventually will, suppress its borrowing costs).